January 30, 2024

$674M Successfully Recovered from over 600 Crypto Hacks in 2023

Crypto Hacks

Crypto Hacks

Blockchain security company PeckShield recently released data summarizing the losses incurred by hacks and scams in 2023, excluding multichain losses.

The total loss amounted to $2.61 billion, which indicates a 27.78% decrease from the previous year when global cyber thefts amounted to roughly $3.6 billion.

PeckShield’s report also stated that over $674 million was recovered from over 600 large-scale hacks they tracked, equivalent to 25% of the stolen cryptocurrency. Compared to 2022, when PeckShield estimated that only about $133 million was recovered from hacks, the amount recovered has significantly increased.

According to the PeckShield team, this recovery rate is a positive development, but it is still important to remain vigilant about cyber threats to ensure the safety of digital assets.

The security team has stated that they were able to recover the stolen funds through more active negotiations with the hackers and the implementation of bug bounty programs. They recommend that engaging in active negotiations with hackers can result in the return of stolen funds, and implementing bug bounty programs or on-chain sleuthing can identify hackers and vulnerabilities in the system, thereby enhancing security.

The blockchain security company suggested several ways to recover funds lost in hacks. One of them is to collaborate with centralized exchanges, Tether, and law enforcement to freeze the funds as soon as they are detected.

PeckShield also presented various data points, including flash loans, decentralized finance (DeFi), and the volume difference between hacks and scams. The data shows that 40% of the hacks in 2023 involved flash loan attacks. While some argue that improvements in DeFi security have reduced the amount of cryptocurrency stolen in 2023, PeckShield highlighted that DeFi remains a prime target for hacks and scams.

On Jan. 4, the co-founder of CertiK, Ronghui Gu, told Cointelegraph that 2023 was a positive year for blockchain security. The executive noted the growth of bounty platforms and proactive security measures as good signs for the year.

Author profile

Whether you want to learn about NFT, Blockchain, Web3.0, Metaverse, or any other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.